2. Introduction
Major foreign banks in India
Market Capitalization of foreign banks
Reasons for foreign bank entering in India
Future of Foreign Banks in India
Conclusion
3. Meaning- A type of foreign bank that is obligated to follow
the regulations of both the home and host countries.
Because the foreign branch banks' loan limits are based on
the parent bank's capital, foreign banks can provide more
loans than subsidiary banks.
For example, suppose the SBI opens a foreign branch
bank in America. The branch would be legally obligated to
follow both Indian and American banking regulations.
4. As at end November 2012, there were 41 foreign banks
operating in India with 323 branches.
Another 46 foreign banks and their representative offices
in India.
There are 1414 ATM’S ( 284 onsite + 1,130 offsite )
Foreign Banks open its ATM in Rural area-29, Urban-268,
Semi Urban-22, Metropolitan-1095
Foreign Banks issued 4.92 million credit & 3.8 million
debit card in 2012 (as on November 2012)
5. Share of bank groups in ATM (in thousands)
1,414
36,079
Public Sector Bank
58,193
Private Sector Bank
Foreign Bank
6. Share of bank groups in Total Credit/Debit Card
(in percentage)
60
50
40
30
20
10
0
State Bank Of Nationalised Old Private Foreign Bank New Private
India Bank Sector Bank Sector Bank
credit card debit card
7. Standard Chartered bank is the oldest
foreign bank that came to India i.e. 150
years ago, now operates the maximum
number of branches i.e. 95
Follows HSBC which entered
in India in the year 1867, now
Operates the 51 branches.
8. CITIBANK has the 3rdlargest
branch network in India i.e. 42.
Citibank was badly affected by
the financial crisis of 2008
Follows ABN AMRO with 31 branches
in India. The bank also offers
specialized services to international
diamond and jewellery merchants,
9. Royal Bank of Scotland in India
goes back to 1921 There are total
of 31 branches throughout the
country with 1.4 million customers.
In November 2006, Barclays started
serving commercial customers.
Barclays now operate 10 branches
& 100 ATM network.
10. Name and address of the Country Centre Date of
S. N representative office of incorporation opening
1 Commonwealth Bank Australia Bangalore 7.11.2005
2 UBSAG Switzerland Mumbai 24.11.1994
3 Raiffeisen Zentral Bank Austria Mumbai 1.11.1992
Osterreich AG
4 Fortis Bank Belgium Mumbai 6.10.1987
5 The Bank of New York USA Mumbai 27.10.1983
6 Emirates Bank International Dubai Mumbai 16.06.2000
7 Credit Industriel et France New Delhi 1.04.1997
Commercial
11. ‘Foreign Banks’ Branches in India Income and Expenditure
‘Foreign Banks’ Branches in India
Amount (in billion) Growth (%)
Items
2009-10 2010-11 2011-12 2010-11 2011-12
Income 452.0 363.2 394.3 -19.6 8.5
Of Which: 303.1 263.2 285.9 -13.2 8.6
Interest income
Expenditure 326.2 200.1 281.3 -38.7 40.6
Of which:
Interest 128.1 85.9 107.3 -33.0 24.9
Expenditure
12. Profitability Ratio ( in per cent )
Profitability Foreign Banks' Operating in India
Ratio
2009-10 2010-11 2011-12
Income to 8.0 8.4 10.1
Total Assets
Net Profit to 27.8 28.6 44.9
Total Income
Net Profit to 2.3 2.8 3.8
Total Assets
13. International Trade in Banking Services
(in billions)
120
105 107
100 98
80
60 Foreign Bank Operating
in India
40 30 44
33
Indian Banks Operating
20
Abroad
0
2009-10
2010-11
2011-12
14. India's GDP is seen growing at a robust pace of around 7%
over the next few years, throwing up opportunities for the
banking sector to profit from.
The credit of banks has risen by over 35% in 2011-12 and
the growth momentum is expected to continue over the
next four to five years.
15. RBI is following a liberal branch licensing policy for
those foreign banks who want to go to the unbanked
pockets.
RBI started sensing enormous business opportunities in
financing trade and small and medium sectors in small
towns in the world's second fastest growing economy.
16. The latest opportunity foreign banks see is in the retail
sector. The government recently allowed overseas
companies in multi-brand retail and removed the cap on
foreign direct investment (FDI) in single-brand retail.
India is a profitable market as well for foreign lenders. The
country is the fifth most profitable market for Deutsche
Bank globally and its most profitable emerging market.
17. Foreign banks are also preparing for the internationalization
of Indian business. As Indian companies go global they need
banking support and it is not possible for Indian banks to be
present all over the world. Foreign banks have the network.
"You have to come in with a big-bang investment."
- Ravneet Gill, CEO, Deutsche Bank India
18. Foreign Banks in India always brought an explanation
about the prompt services to customers. After the set up
foreign banks in India, the banking sector in India also
become competitive and accurative.
India is expected to find a place in the strategy of these
banks given the country's growth prospects.
India's GDP is seen growing at a robust pace of around 7
per cent over the next few years, throwing up opportunities
for the banking sector.
RBI provide a launch pad to foreign banks for greater
business expansion after 2009.
